IGas Energy PLC (AIM:IGAS, OTC:IGESF) shares traded lower on Thursday after reporting lower production volumes resulting from equipment failures in the first half of its financial year.
The company, in a statement ahead of full-year results, reported average production of 1,898 barrels oil equivalent per day (boepd) whilst noting that a recent ‘production drive’ in October saw output reach a peak of 2,432 boepd leading to an average of 2,000 boepd for the month of December.
“We made up for significant falls in production in H1 due to equipment failures to finish the year in line with expectations,” IGas interim executive chair Chris Hopkinson said in the statement.
IGas pitches guidance for 2,000 beopd and said it expects operating costs of around US$41 per barrel.
“The Q4 production drive ensured that wells, plant and equipment had the maximum uptime,” Hopkinson noted. “As we move into 2023, our focus will be on maintaining and increasing production on our more profitable fields, whilst attempting to drive down costs across the portfolio."
“We have made significant progress during the year in bringing our vision for decarbonisation of large-scale heat using geothermal energy, in the UK, closer to fruition.
“We have been working closely with government, academia and commercial partners to accelerate support for and understanding of this proven technology," he added.
In London, IGas shares are down around 4% changing hands at 19.95p.